tv CNN Newsroom CNN July 13, 2012 6:00am-7:30am PDT
retire at 45. it takes so much time to practice. and practicing swimming is boring. i'm telling you from inside the circle. >> the beard slowed you down in the water. >> i appreciate that "end point." "cnn newsroom" begins with carol costello right now. >> hi, soledad. happening right now in the newsroom, security threat. a d.c. police officer on desk duty this morning after he was reportedly overheard saying he would shoot the first lady. red light runner. an amazing crash. a driver airborne and now arrested for dui. the terrifying moments all caught on a traffic camera. still standing. the fate of the statue of joe paterno in question today and the push to bring it down. penn state carefully weighing its options. and burn the uniform. harry reid wants to torch the chinese made clothes saying he wants the olympians to wear shirts with usa on them.
this morning the olympic committee responds. "newsroom" begins right now. good morning. happy friday 13th. i'm carol costello. we begin this hour with a very bad day for the nation's biggest banks. jpmorgan chase and its ceo jamie dimon are opening their books and telling us just how much money the firm lost in a bunch of risky trades. the blunder stunned the financial world and fueled more debate on whether banking regulations are tough enough. alison kosik is at the new york stock exchange and has been listening to a jpmorgan conference call this morning. alison, what have you heard? >> if you're totalling up the losses so far this year from those trading losses from the risky trades, what it adds up to is $5.8 billion. that's almost triple what was originally thought. but jamie dimon said they could get bigger by another $1.7 billion. keep in mind just because the trades were discovered and
announced to everybody, you know, they can't just suddenly be stopped. so what has to happen is the bank still has to unwind some of the trades. many of which were very complex, and that takes time. but get this. even with the trading losses that were announced today, the bank still beat expectations, reporting a $5 billion profit in the second quarter. it's taken in $9.9 billion in total profit so far this year. also the bank says the chief investment office where the losses came from will no longer trade these complex derivatives. here is something that makes the announcement interesting. these releases normally come during a very short conference call, but jamie dimon is sitting down at headquarters here in new york right now. he has extended the meeting to two hours. you know, it looks like dimon knows he has lots of explaining to do to get that investment confidence back and let people know that the bank does have things under control. just so you know, jpmorgan shares were up more than 1% ahead of the opening bell.
>> alison, thank you. here's why thepmorgan story matters. it's the nation's largest bank, and a stock that's likely in your 401(k). plus, the shadowing world of derivatives almost brought the financial world to a collapse just a few years ago. christine romans is joining me now with more. >> all of those reasons are why so many people are looking at what might be deemed as a business story and saying this is a story for everybody, right, carol? this is a trading los that happened right under the nose of what was thought to be the smartest banker in the room, jamie dimon. and the loss showing that even from the very beginning, when he first said it was a tempest in a tea pot. and now it's $5.8 billion. and really the period is not on the sentence yet. we'll have to see how the rest of the trade is unwound. $5.8 billion loss shows very significant risk failure in this bank from some of the very people that were depending on
having good risk management because of how important banking is to the economy. >> what about relations? will anything happen in light of this new information? >> it's interesting. when you look at this, even a $5.8 billion trading loss which is huge, it's embarrassing, dumb, a big stumble. jamie dimon on the call still talking about how we really messed up. this has shape ken us to the co. we are changing. nobody feels this more than we do. but the question is, what kind of regulations could protect you against just making a really big dumb mistake? also, very important to note, last year this company made $19 billion in profit. even if this is more than a $6 billion trading loss, the profits of the company can still absorb it. think of that. this company even with this big stupid mistake is still making a ton of cash, $5 billion in just three months. so it's still very profitable business.
>> christine romans, live in new york. thanks. >> you're welcome. turning now to politics. while president obama is often praised for his speaking skills, the commander in chief says he may not have done enough to sell his message to the american people. in an interview with cbs news, obama reflected on his first term and how important it is for a president to inspire the people who put him into office. >> the mistake of my first term -- couple of years was thinking that this job was just about getting the policy right. and that's important. but, you know, the nature of this office is also to tell a story to the american people that gives them a sense of unit and purpose and optimism, especially during tough times. >> president obama went on to say thatf re-elected, he will
make an effort to get out of washington and spend, quote, more time with the american people listening to them. and a washington, d.c., police officer who was a police escort for members of the obama administration has now been reassigned. "the washington post" is reporting that the motorcycle cop was overheard saying he would shoot mrs. obama. the newspaper reports there's no indication that the first lady faced any real danger. the secret service says it is following up on the incident. there is new fallout this morning from the report condemning penn state's handling of the jerry sandusky child sex abuse cases. many people are calling for the statue of joe paterno outside beaver stadium to be taken down. no response yet from the university, though the board of trustees will speak publicly today. cnn's susan candiotti is in philadelphia. good morning, susan. >> reporter: carol, the freeh report a brutal assessment of what went wrong and how jerry sandusky was able to rape and
molest so many children over the course of at least 15 years. louis freeh finding that four top penn state officials were part of what he called a culture of secrecy built around protecting the image of penn state university and its football program. >> our most saddening and sobering finding is the total disregard for the safety and welfare of sandusky's child victims by the most senior leaders at penn state, the most powerful men at penn state failed to take any steps for 14 years to protect the children who sandusky victimized. mr. spanier, schultz, paterno, and curley never demonstrated through actions or words any concern for the safety and well-being of sandusky's victims until after sandusky's arrest. >> reporter: freeh's investigators found that joe paterno knew about problems with
jerry sandusky going back to 1998. despite his grand jury testimony to the contrary. and an interview he did with "the washingn post" just before he died. freeh disclosing some new emails, including one written by athletic director tim curley, saying that joe paterno wanted to be kept abreast of what was going on about that problem back in 1998 involving jerry sandusky and a boy. and then he also showed a handwritten note, written by vice president schultz, asking this. is this the opening of pandora's box? are there other children? now lawyers for president graham spanier aren't commenting. attorneys for curley and schultz, who are charged with lying to a grand jury and failing to report child abuse, say that the freeh report is not complete, and that their clients will be vindicated at trial. spanier has not been charged. the paterno family is defending the coach. >> he said all i knew to do was
to tell -- report it to my superiors. this is not a subject that he was comfortable talking about. this type of thing. but he said, look, i knew i had to give it to my superiors because i knew they could handle it better than i could. i felt like they could handle things. and he said in hindsight, i wish i had done more, followed up more aggressively. >> reporter: penn state's board of trustees, slammed for its lack of oversight in the freeh report, is promising to take steps to ensure that something like this will never again happen on penn state's campus. meantime, the state's criminal investigation is continuing. carol? >> susan candiotti reporting. a madrid-bound delta flight returned to new york last night after suspicious wires were found in the plane's bathroom. the plane parked in a remote area of jfk airport where passengers were evacuated. the wiring was determined not to be a threat. no arrests were made. and the flight was expected to
resume later. today senator chuck grassley is raising new questions about toyota's acceleration problems, and he wants the feds to investigate. he says he was tipped off by whistle blowers that believe that the federal investigations are, quote, too narrow. grassley says he wants a closer look at the 10 whiskers crystaling that might cause unintended acceleration. there have been some 10,000 reports of caring revving up on their own. a toyota spokesman says there's nothing new about the 10 whiskers and no proof that they occur more often in toyotas than in other vehicles. this election season may set the record for airing the most negative political ads ever. but you can't believe everything you hear. some of the ads are completely false. so how do you know?
every communications provider is different but centurylink is committed to being a different kind of communications company. ♪ we link people and fortune 500 companies nationwide and around the world. and we will continue to free you to do more and focus on what matters. ...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ ...so what does it mean for you and your family? [ female announcer ] you've earned the facts. ♪ washington may not like straight talk, but i do. [ female announcer ] and you've earned a say. get the facts and make your voice heard
and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you. 13 minutes past the hour. checking our top stories now, we now know how big that trading loss is at jpmorgan chase. this morning the nation's largest bank reported the risky trades cost $5.8 billion. that's nearly triple its initial estimate. but the bank says it still managed to turn a profit. so when did mitt romney really leave bain capital? in 1999, according to the massachusetts ballot law commission. the reason this matters,
romney's exit date has been debated. wells fargo is paying up to the tune of $175 million. the nation's largest mortgage writer is settling allegations th it discriminated against african-american and hispanic borrowers. the department of justice says 30,000 minority borrowers were charged higher fees or pushed into more costly subprime loans. in weather news, a severe drought is taking hold of the midwest and sweeping across much of the country. in fact, drought conditions are now confirmed in nearly 2/3 of the lower 48 states. that's a big jump from last week when it was about 50%. nba star blake griffin will reportedly miss the summer olympics because of a knee injury. his team, the clippers, says he tore his left meniscus and will need surgery. anthony davis will take his place on team usa.
that woke you up, didn't it? this is what it's like to race down a highway at breakneck speeds reaching 186 miles per hour. but this motorcycle joyride probably won't have a happy ending. police in canada have identified the 25-year-old daredevil who videotaped himself and they are now looking for him. mitt romney's already brimming campaign is a lot richer this morning thanks to dick cheney. there was a big fundraiser in the shadows of the grand at a club near cheney's home. cheney took the microphone and told the crowd, romney is the candidate who could handle a crisis like 9/11. the event raised a whopping $4 million. and it seems everyone is wondering who will mitt romney pick to be his running mate. today there is new buzz it could be condoleezza rice. the drudge report cites unnamed
sources as saying the former secretary of state is near the top of romney's list. stories all over the internet. but remember, condoleezza rice has repeatedly said she is not interested, and she supports abortion rights. romney says his running mate would be anti-abortion, so this could all be speculation. cnn has no information about rice being on romney's list. this year, you may be bombarded with more negative political ads than ever before. take a look at these numbers. just in columbus, ohio, one major city in a swing state, more than 1,600 spots air between july 1 and july 12. that's a lot of spots in 12 days. compare that to the same time period, same city, during the 2004 election, and you see the number is more than triple. all of these ads, by the way, are negative ads like this one from president obama's campaign. >> mitt romney's companies were pioneers in outsourcing u.s. jobs to low-wage countries.
he supports tax breaks for companies that ship jobs over e overse overseas. >> and this response from mitt romney >> when a president doesn't tell thetruth, how can we trust him to lead? the obama outsourcing attacks, misleading, unfair, and untrue. there was no evidence that mitt romney shipped jobs overseas. candidate obama lied about hillary clinton. >> so shame on you, barack obama. >> it turns out that both ads are misleading. there's not much evidence to support obama's claims that romney promoted outsourcing jobs. and romney's ad took the hillary clinton quote out of context. so if a political ad is misleading or flat-out untrue, why is it on television? joining us now is ken goldstein. good morning. >> good morning, carol. how are you? >> first question, why can candidates put an ad on television that's misleading or
even untrue? >> well, in the case of those ads, which are both ads that are paid for by the candidates, it would actually be illegal for the stations to not take the ad. that candidates for federal office, there can be no censorship in the ads that they air on television. so it's a very simple answer. they can because it would be actually illegal if someone stopped them from doing it. >> because it would be in violation of their first amendment rights? >> exactly. the way the -- there's fcc regulations. now it's different for groups. so stations not only can but are required to look at the ads that groups air. but groups air -- or ads aired by the candidates, candidates get to say what they want. >> so the group puts an ad on that's untrue, it's up to the individual broadcasting entity to pull that ad off, right? >> well, it's the responsibility of the individual broadcasting entity to review every ad that it is given to air. i'm sure your station reviews every single ad that it airs,
whether it's for cars or pharmaceutical drugs or for groups airing political ads. >> so people are being slammed by these ads. and, you know, you gave us this example of columbus, ohio. all of these ads are negative. and they are running constantly in television markets. is that harmful? how can people make the right decision about who to vote for when they are constantly being slammed by negative sometimes misleading ads? >> a couple of things. before i took over here as head here, i was a professor. one of my focusing was looking at advertising in general and negative advertising in particular. people have been saying this is the most negative television campaign for as long as there has been television. and people have been saying this is the most negative campaign as long as there have been campaigns in the united states. >> but that doesn't make it right. >> well, it hasn't changed. and when i actually look at the
evidence and what other scholars have looked at, we actually see noevidence that advertising or negative advertising in particular does anything to depress turnout, to disengage people. and in fact, the findings are typically the opposite. that exposure to advertising actually makes people more knowledgeable about the candidates, spurs them to go out and learn more information and actually makes them more likely to turn out, not less likely to turn out. >> but aren't they casting their vote based on sometimes faulty information? is that bad? >> well, again, listen, i think we have to give people credit. there is a tremendous amount of information out there. and, listen, viewers watching your show right now, once i got put in this little room i couldn't hear what the ads were, but the ads when i was in the green room were mostly political ads. if they are watching cnn, they are getting some information from political advertising. some information from you. they are getting some information from me. they are getting some information from other
corresponds. they may be going on websites and reading their morning newspaper. so television advertising isn't the only way that people get information. and, listen, although i have made a career studying campaign ads, and i'm in a business now where we track campaign ads, this election is not going to get decided by a silver bullet ad. there's fundamental factors that drive elections in this country. party identification. the state of the economy. now, can the campaign matter at the margin? absolutely. and is television and advertising an important part of a campaign that can matter at the margin? yes. but it's not going to be this one silver shot that's going to win or lose an election for one of the candidates. >> ken goldstein, thank you for joining us this morning. >> thanks for having me. on the international front, a horrifying situation in syria gets even worse. it's being called the bloodiest day since the protests began. aspirin, really?
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in syria, reports of the bloodiest single day since the uprising began 16 months ago. an opposition group says settlement forces massacred 220 people in the province of hamma alone. the group says villagers were shot indiscriminantly when they fled their homes. joining me from abu dhabi is mohammed jamjoom. there is just no end in sight. >> that's right.
and the reports we are getting from activists are extremely disturbing. they say that yesterday in the province of hama, that it was surrounded by security forces, by tanks, and it was shelled for several hours. and that after the shelling stopped, security forces and pro regime militias came into the town and started slaughtering families indiscriminantly. we have seen some very disturbing videos emerge so far. we must warn viewers they are very graphic in nature. one video purports to show several bodies in the street, very, very bloody and very, very gruesome. another video purports to show a man weeping over the corpse of his father, who activists say was killed as a result of that massacre yesterday. very, very, very sad stuff. and people are telling us it was just horrifying in that town. now for their part, the syrian government are continuing to blame the violence on armed terrorist groups. the syrian government put out a
statement that what happened there was that the residents of the town called for help because there were armed terrorist groups there. that security forces arrived, started clashing with those terrorists, and that as a result 50 people were killed in that town yesterday. carol? >> the former u.n. chief, kofi annan, is in the country. some government protesters are saying he should leave because this is actually spurring more violence. anything to that? >> well, there's a lot of outrage being directed today not just at the syrian regime, but inside syria we are hearing of a lot of protests in places where anger is being directed at kofi annan. they are calling it the friday asking for the removal of kofi annan as a special envoy to syria. it's because the people of syria feel that the u.n. observer mission and kofi annan have been completely ineffective. they feel that the violence has really just spiraled out of control. they haven't been able to do anything to staunch the
violence. so they are havery upset and th believe these bodies bear some responsibility. earlier today we heard from general robert mood, the head of that u.n. envoy mission in syria, even though the mission is suspended. he verified this violence that happened in trimsa yesterday, and here is more of what he had to say. >> from our presence in the hama province, we can verify continuous fighting yesterday in the area of trimsa. this involved mechanized units, indirect fire, as well as helicopters. we stand ready to go in and seek verification of facts if and when there is a credible cease-fire. >> kofi annan also issued a statement today in which he said he was shocked and appalled at
what happened, the news of what happened in trimsa yesterday. he said that the u.n. mission there should be able to go in and investigate, but the key is, will they be able to? nobody knows at this point. also this morning in canada, a state of emergency in the wake of a devastating landslide. searchers are scrambling to find people who may be buried. giggled, snuggled, ...yellowed... chatted, chewed, ...yellowed. and over all those years, your teeth...have yellowed. fact is, if you're not whitening, you're yellowing. crest 3d white whitestrips remove over ten years of stains by going below the enamel surface. and, they whiten 25 times better than a leading whitening toothpaste. crest whitestrips. life opens up when you do.
today we have learned they are nearly three times as big as originally thought. instead of $2 billion, the losses total $5.8 billion. a landslide in british columbia swallowed three hopes. four people are missing. rescuers have been hampered by instability in the mountaius area as well as poor cell phone service. more on the scathing report of penn state's handling of the jerry sandusky scandal. the university's board of trustees meets today after being accused in the report of in its oversight duties. meantime, some are calling for the removal of joe paterno's statue at the school. the legendary coach and top school officials were blasted for covering up for sandusky and his abuse of children. opening bell at the new york stock exchange. big news today as jpmorgan chase announces it lost a total of $5.8 billion in bad trades earlier this year.
is the news moving the markets? alison kosik is at the new york stock exchange to tell us. good morning. >> good morning. it looks like investors are feeling ok with what they heard today out of earnings out of this conference call that continues with ceo jamie dimon. stock right now of the jpmorgan chase shares are up almost 3%. yes, you're looking at the first chance for investors to react. look at how shares have done since the news came out about this big trading loss. shares have fallen 16%. but shares had a big run-up before hand, so when you look at the stock overall for the year, it's actually coming outho high for the year. the big number that everybody wanted to know was the exact dollar amount of the trading loss. and of course at $5.8 billion, yeah, that's an eye-popping number. but there's really been a sense that this release today was less about the number itself and more about jpmorgan chase restoring confidence to its investors and customers. ceo jamie dimon is saying that the traders involved in the loss could lose as much as two years
of their income because they may have to actually give back some of their compensation because of the money they lost. and by the way, they are no longer working at the bank. all of the managers involved with this office behind the loss have been separated from the bank without any severance. so essentially there is a feeling that jpmorgan is taking this seriously and addressing the problem. and we are sort of getting a certainty on what's happening is the reason we are seeing shares higher today. jpmorgan chase shares are actually one of the leaders on the dow. >> but it is a bad news day for bas when all is said and done. wells fargo settled with the justice department for $175 million over a discriminatory lending lawsuit. tell us about that. >> right. so actually what's taking the front burr this morning is its earnings report. wells fargo did have its report out today. the bank actually carol is raking in $4.6 billion in the latest quarter thanks to strong mortgage banking income. now we know that those 30-year
fixed rates on mortgages have been hitting record lows almost every single week. they are now at 3.65%. what's happening is a lot of borrowers are refinancing, and that's boosting wells fargo's results. and as i said, this does come the day after that big announcement yesterday that the bank is settling for $175 million with the justice department on allegations it discriminated between black and hispanic borrowers from 2004 through 2009. now we did see the stock take a hit yesterday. wells fargo shares right now are up about half a percent on the favorable earnings news. carol? >> fascinating. alison kosik at the new york stock exchange. geeks, nerds, and gamers flocking to comic on underway now. we are live there in san diego. and it's lonely at the top for justin bieber, but there's one entertainer under 30 who rakes in even more money than the biebs. can you guess who it is?
this is a gigantic weekend for all forms of entertainment. comic book fans, movie buff, gamers, 130,000 of them in san diego right now for comicon 2012. nischelle turner with "showbiz tonight" is also in san diego. i thought you'd be dressed in some wacky outfit for this story. >> reporter: carol, i have so
much concealer on. i was telling ashley and alina this morning, this is my mask. i've been up since 12:30. so i am dressed up this morning. you know what? this is such a cool convention. actually, it's chic to be geek. that's what i've been saying for the next three days here in san diego. 130,000 of the biggest comic book, gamer fans, really descend on san diego. and you know what? i drug one out of bed for you this morning. i made him come talk to us. and he doesn't even really have a voice. but come on in here with me. zachary levi, the star of "chuck," is a big fan. and also he's kind of created this whole nerd hq that you brought here. >> yeah. >> reporter: i'm going to give this to you to share. say hello to carol. >> hi, carol. >> oh, my gosh. you really can't talk. >> reporter: i know. i made him do it, though. if you could, tell me just a little bit about nerd hq. this is your second year here at
comicon? >> yeah. it's the second year. i really believe in putting a premium on fans. and the fan experience. and so my company, the nerd machine, we decided last year that we were going to throw an event for fans. it's a free event. it's just chockful of video games and technology and a place for both fans and celebrities to hang out. it's like the fort, like the treehouse of sorts. >> reporter: but you're not slick. because i think that you're a bit of a fan yourself. >> oh. >> reporter: this was like a labor of love, right? >> totally. and also a way for us to raise as much money as we possibly could. i really believe in conscientious capitalism. you can make a buck but give a buck at the same time. we do panels. comicon is amazing. they have giant panels with 5,000, 10,000 people. we do small, intimate ones where fans pay per seat, $20. every cent goes to operation smile. i'm an ambassador for them. last year we raised $40,000. this year we're on track to
raise $100,000. >> reporter: fantastic. and i heard you had this impromptu dance party yesterday. what did you do? >> tonight is the big nerd party that we throw every year. but last night was the army nerd party. it was the fans. everybody came out, all the fans and all the public. i was going to go to bed. and then nathan fillian showed up. and he and i started dancing. and then some of my cast all just showed up. and some of my friends from the show. haven, emily rose, eric balfour, so people just showed up. and i said, all right, let's just dance. >> reporter: an impromptu flash mob at comicon. thank you so much. and congratulations on everything. nerd hq, all the proceeds go to operation smile. and we love that. so that's kind of what i'm doing, hanging with zachary this morn. he has his coffee.
he didn't bring me any. but i'm going to get some and we'll see you later. >> i wish i could give him should cough drop, but i can't. thank you both. have fun and i'm jealous, nischelle. aerosmith's frontman, steven tyler, says he's leaving his mistress, aka "american idol" after two seasons. he said it was over the top fun, but it's time to bring back the rock-n-roll. he ain't kidding. aerosmith's 15th studio album is due out in november. tyler confirmed his exit in a statement saying, after some long hard thoughts, i have decided it's time for me to let go of my mistress "american idol" before she boils my rabbit. so we know steven tyler is out. about you there are also rumors swirling that both randy jackson and jennifer lopez may call it quits. and an appearance on "the today show," an emotional lopez said, quote, maybe it's time for me to go. there are also reports that jackson plans to move out of the judge's chair into a mentoring role instead.
entertainment is a young woman's world. forbes just released its list of highest paid celebrities under 30. and guess what? young women dominate the top five. taylor swift tops the list, raking in $57 million from may of 2011 to may of this year. not only are her albums blockbusters, but her concerts make big money too. other female singers like rihanna and katy perry made the top five. the only guy in the top five, 18-year-old justin bieber. he nipped at taylor swift's heels earning $55 million to land in the number two spot. most of us use the same passwords for everything. but you should be concerned about that. several thousand online accounts have been hacked, and now everybody knows what your password is. and these olympic uniforms. some say they look nice. we know they are not made in the usa. and one american senator wants to burn them. we'll explain.
you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.
it's 45 minutes past the hour. checking top stories now, remember those errant trades by the chief investment office at jpmorgan chase? just a few moments ago we learned those trades cost the bank $5.8 billion. those trades rocked the financial world. here is a story that may nudge you to change your
password. more than 450,000 yahoo accounts were hacked this week, and the user names and passwords posted online. and get this. the hack is not limited to yahoo users. some gmail, aol, and microsoft live accounts were also compromised. if you're a yahoo user and want to see if your account was hacked, go to the website on the screen and plug in your name. good luck. heavy rains in houston left many streets underwater. some areas got drenched by seven inches of rain and several thousand homes are without power this morning. the summer olympics start in just two weeks, and the top man in the senate wants team usa to burn its uniforms for the opening ceremonies. democrat harry reid is mad that the uniforms designed by ralph lauren were actually made in china. the u.s. olympic committee is sticking by the controversial clothing, though. and take a look at this.
a crash caught on traffic cameras in new jersey last month. oh. you can see headlights coming towards you and then that happens. the driver, you know, he has a red light but he didn't stop. the car hit another car. it spun in the air, takes out a lightbulb and lands on the side in the other lane. the driver was charged with, guess at, dui. one beauty pageant contestant has reason to be worried about stumbling onstage. she is legally blind, but she is not making any excuses.
welcome back. an 18-year-old girl, actually a young woman, is actually a young woman is competing in miss florida, usa contest, and she's legally blind but she is not letting that get in the way. here is john zarrell a. >> reporter: just to sign her name, she must hold her face inches from the signing sheet. you see, con or is legally blind. we're what, maybe four feet apart, if that, and you can't see me. >> no. it effects my retina, my central vision. my peripheral vision is intact. >> reporter: at six months old she developed over her left eye a had he man gee only a, a build-up of blood vessels. surgery took care of that.
in a few years, she was diagnosed with star garts, a rare disease. and one had nothing to do with the other. just plain bad luck. >> i fell going down the steps of the lincoln memorial, but i managed. >> reporter: star garts, gradual worsening of sight until blindness is incurable. she also has incurable thirst to overcome her disability. she was in gymnastics until -- >> when she had to do vault, she ran into the vault one time. >> reporter: while connor can barely see, her vision of the future is clear. she's the first blind woman to sign up for miss florida, usa. winner goes to the nationals. her journey began a couple years ago when she was 16. on a whim, she entered a local pageant and won. >> what is that? >> that's harvest queen. >> reporter: she says each new
success, each crown, helps build in her a confidence and self esteem that was lacking. each new success led her here. >> what makes her special is her drive. she's admirable, doesn't give up. >> reporter: she's treated like all the other young women, and she never plays to her disability. >> she's the last one tell you, she prefer you not know, and more importantly it is not what i can't do, it is what i can do. >> i have come to learn it is not about winning the pageant. i am so glad my story could be shared. at least i can inspire one person. if i can inspire one person, i feel like i've won. >> reporter: perhaps what's most refreshing, connor doesn't take herself too seriously. >> what's on your mind now? >> dinner.
>> reporter: tomorrow is the final on hollywood beach. connor says no matter what happens, she's going to put aside the pageants for awhile to concentrate on her education. taking her 4.2 high school gpa off to florida state university in the fall. >> that's an awesome story. how did she acquire such a good attitude? >> reporter: she says that it has been the pageants that really, up until then, she said she was overweight, didn't have the self esteem. after she entered that first pageant, and won, it really started to build confidence and self esteem. the biggest problem she says is she'll never be able to drive, and that's what bothers her the most. >> as any 18-year-d might say. thank you so much. fishing, it is supposed to be a relaxing sport, at least most times, unless of course
team usa basketball squad begins with a blowout. crushed the dominican republic in las vegas. 113-59. carmelo anthony scoring there. great ball move by team usa. 27 assists on the night. kevin durant let with 24 points in 22 minutes. they have four more exhibition games before the first olympic contest on july 29th. team usa basketball players will be crashing at a hotel in london instead of olympic village. a good thing for them because the beds at the village are just 5'8" long, less than 10% of american male olympians can fit into that size of bed. it is also too small for a number of women competing. beds can be extended we hear, but don't be surprised if they blame a losing time on a poor night's rest. that's a look at sports this morning. just when you thought it was safe to go back in the water,
not one but two sharks stole the catch of the day. both fish tails caught on camera. here is jeanne moos. >> reporter: this is a tale of two fish stories, one on a deck in south carolina tuesday, the other in a boat in australia last year. in both cases, a person fishing hooks a fish, only to have a shark snatch it. >> [bleep]. >> reporter: south carolina, australia. now both parties took the name of the lord in vain. >> oh, [bleep]. >> reporter: but that's where the similarities end. >> it is a shark, a shark! there's a big [bleep] shark! >> geez, i hate sharks. what a dirty scum. >> reporter: sarah breem had never before caught a fish let ale encountered a shark. >> i was scared, i seen it jump,
i thought oh, my gosh, it could jump up here and get me. >> reporter: when you combine the ballistic americans with the chilling australians. >> bloody sharks. >> reporter: you get the catch of the day, holy bloody shark. last year, australia's nine network morning shows sent a reporter to fish for a shark, supposedly sighted in a lake. >> i'll give you one chance to catch the shark. >> reporter: his cast was impressive, but his catch missed the mark. >> oh, no. slow down, that's enough. >> peking duck? >> awkward. >> reporter: the duck was fine, unlike the mackerel that failed to duck the shark. the one place you'll never catch a shark, in the new york city subway. maybe you couldn't catch one but
you could buy one. a website obtained photos of a guy selling a live baby shark aboard a j train at 1:00 in the morning. he wanted a hundred bucks for the little shark he said he caught at coney island after it bit him in the butt. seriously, folks, your chances are better of hooking jaws and grabbing a brew beats shark stew. jeanne moos, cnn, new york. >> what's with the beer can? next hour of cnn newsroom starts right now. and good morning to you. happy friday the 13th. i'm carol costello. thank you for joining us this morning. just ahead in the newsroom, forget the days of mexican drug cartels smuggling sacks through the sewer to get to the united states. american officials found one of
the most sophisticated drug tunnels yet. >> there's absolutely no dirt in here, it is very clean, and there's light. there's electricity. and there's a fan even. >> if you're cross troe phobic, beware. we take you inside this elaborate tunnel. and why would anyone want to burn the u.s. olympic uniforms. maybe because the tags read made in china. harry reid leads the mark to toss them in the trash and light a match. taking a closer look at the uniforms. we even have one set to look at. and some teacher pay will be determined by student test scores. you better believe this is causing an uproar. we begin this morning with wall street and its reaction this morning to news that jpmorgan chase lost nearing $6 billion on a series of risky bets. that's considerably larger than
the $2 billion initially reported. alison kosik is at the new york stock exchange with more. good morning. >> reporter: good morning. investors seem to be okay with the numbers. shares of jpmorgan chase are up more than 3.5%. what's been happening this morning, there's been a two hour meeting with jpmorgan chase ceo jamie dimon and analysts and some reporters. no one knew what the outcome of the meeting would be. everybody really wanted to know how big would this trading loss be from the risky trades that had been happening. wall street hates uncertainty. so a lot of traders were very uneasy going into the session today. because of the meeting, a lot of questions were answered and answered the way the market likes to see it, and that's a good thing. the total net came out $5.8 billion for the losses. almost triple what it was originally thought to be. yes, it is eye popping. and the ceo, jamie dimon, says the losses, guess what, can get bigger by $1.7 billion.
even with the trading losses, the bank still beat expectations, today reporting $5 billion profit in second quarter. look at the whole year, jpmorgan chase has taken in $9.9 billion in profit. as for the employee fallout, the bank says the chiefnvestment office where the losses came from will no longer trade these complex directive tiffs. dimon says the traders involved in the loss could give back almost two years of their income and no longer work at the bank, by the way. jpmorgan chase seems to be taking this seriously, something wall street likes to see, for one doing this long form earnings announcement via conference call through the meeting. jamie dimon actually sat down with the analysts to explain things. carol, he knows he has to help get the investor confidence back, let people know the bank does have things under control. you're seeing that confidence come back there on the board with the share price. jpmorgan chase shares up 4%.
>> alison kosik live at the new york stock exchange. propofesident obama is talk about his first term, passing his agenda being his vision. >> the mistake of my first couple of years was thinking this job was just about getting the policy right. and that's important. but you know, the nature of this office is also to tell a story to the american people that gives them a sense of unity and purpose and optimism, especially during tough times. >> if president obama is reelected, he says he plans to get out of washington more and talk to americans about working
together on the country's future. and a washington, d.c. police officer who was a police escort for members of the obama administration is now behind a desk, reassigned. "the washington post" reporting the motorcycle cop was overheard saying he would shoot mrs. obama with a gun. the newspaper reports there's no incation the first lady faced any real danger. the secret service is following up. former president bill clinton is weighing in on the current presidential race, speaking to nbc's "today" show this morning. clinton talked about the economy and why he says one party may be putting politics ahead of the nation's fiscal health. >> i'm not sure both sides want the economy to get better. i know the president does, but i know what senator mcconnell said, his number one priority was winning the election. >> it sounds like you're saying the republicans are basically rooting for the economy to fail. >> no, i didn't say that, senator mcconnell did. senator mcconnell said his
number one goal was not to get the economy going again, it was to defeat the president. >> mr. clinton added president obama's proposal to eliminate bush tax cuts for wealthy americans, while keeping them in place for the middle class is fair. he says the only way to cut the deficit is to cut both spending and boost revenue. test scores have taken on a huge significance in our schools. now ohio is upping the ante more by tying test scores into how much teachers get paid. cnn news anchor carl zeus has been following this. at face value, students do well, right? teachers get paid more. >> yes, at face value. really, it is controversial, the measure how long students are doing is based on test scores. in ohio, it used to be this. that teachers would be evaluated. an observer would come in, rate
the teacher and rate them as unsatisfactory or satisfactory. they will be graded in the 2013 school year. teachers will be graded how well they're doing. half the great will depend how will students are performing. another aspect is that seniority will take a back seat to allf this. doesn't matter how long the teacher has been in the ohio school system. it really comes down to this. how well students are doing, and teachers having to be reevaluated every year, carol. >> who is doing the grading of teachers? >> that's going to be partly done by the observer. they will be observed. state will look at what test scores are, how well students are doing, and factor that. it will effect how much teachers are paid, it will effect who gets promoted and who gets fired. there's a lot of controversy in this. >> some schools are better than others. i would assume teachers aren't so happy about this. >> the teachers we heard from at
cnn schools of thought blog, cnn.com/education, teachers are saying this is not a good idea. we have a couple of comments. one teacher says this is fine as long as athletes are ultimately paid based on how well the final score turns out. that dentist and doctor salaries are determined by how healthy their patients are. we have another teacher said she has taught in two different school systems, she taught with different students and had different results with the same teaching style. this law would basically mean i would never go back to teach the students who did not perform as well. a lot of areas may be rural areas. students are concerned about not just how well they do on tests but concerned about where their next meal comes from. if they're unable to improve test scores, you could have a situation where a teacher they need could ultimately be fired or not be promoted because the fact the scores aren't improving.
>> interesting story. is this already in effect or is it proposed? >> this takes effect in 2013, 2014 school year, and is dependent on the state budget, this is working with the state budget where they wanted evaluations based on student scores. the federal government wants ohio to make personnel decisions based on teacher performance. >> carl, thanks so much. the african-american vote in the spotlight. mitt romney and joe biden stating their case to naacp, but what do voters think of all of this? forget what the pundits are saying. we will talk to a voter next. [ man ] ever year, sophia and i use the points we earn with our citi thankyou card for a relaxing vacation. ♪ sometimes, we go for a ride in the park. maybe do a little sightseeing. or, get some fresh air. but this summer, we used our thank youpoints to just hang out
11 minutes past the hour. checking top stories now. we know how big that trading loss is as jpmorgan chase. this morning, the nation's largest bank reported the risky trades cost $5.8 billion. nearly triple its initial estimate. the bank says it still managed to turn a profit. more on that scathing report in the jerry sandusky scandal. the board of trustees meets today after being accused of failing in oversite duties. some are calling for removal of joe paterno's statue at the school. in money news, groupon stock is hovering at 725. the online coupon company stock nowhere near the initial public offering price of 20 bucks. in weather, severe drought taking hold of the midwest, sweeping across much of the country. drought conditions are confirmed
in nearly two-thirds of the lower 48 states. that's a big jump from last week when it was about 50%. nba star blake griffin will reportedly miss summer olympics because of a knee injury. his team, the clippers, said he tore the left meniscus and will need surgery. anthony davis will take his place on team usa. so if you ever wondered, this is what it is like to race down a highway at break neck speeds, reaching 186 miles per hour. but this motorcycle joy ride probably will not have a happy ending. police identified the 25-year-old dare devil that video taped himself, that's kind of illegal. police are now looking for him. if mitt romney's speech before the naacp was a trip to unfriendly territory, joe biden's appearance was like a
hero's welcome. the crowd loved him and what he had to say about president obama. >> he saved the nation's financial system, in doing so prevented worldwide depression. it wasn't a popular decision, but it was an essential decision, and he was right. >> mitt romney's speech was met with some applause and boos over obama care and romney's vow to repeal the law. >> i'm going to eliminate every nonessential expensive program i can find, that includes obama care. and i'm going to work to reform and save -- [ boos ] >> romney said his intent was to show the crowd he wants to represent all americans. we wanted to get away from the talking heads and talk to a voter about the fight for the african-american vote. with us, nana boone, a married full-time working mom, lives near atlanta. thanks for being with us. >> thank you for having me. >> okay. have you decided who you're going to vote for? >> i am not 100% decided yet,
but i am leaning towards voting for obama. >> but you're open to romney? >> i am. i am. i think he brings to the table some good business sense, but i wonder if too much of that business sense is taking him away from having that human aspect the voters need. >> romney appeared before the naacp convention, did that resonate for you? >> i think it was good choice for him to go, despite not necessarily being as popular, but i don't agree with all he shared with the group. so when he talked about eliminating nonessential expenses, that's the business side. then to say including obama care, it is also suggestive, of course, subjective, so i think when he said that, then that took him again away from the human aspect. everyone deserves health care. >> was it the terminology he used, obama care, or was it the idea that you like the health care law and think it should stay in place. >> i think i like the health care law, i think it should stay in place. i think he is more focused on
being anti-obama and less focused on being pro-people. i think that's where he's losing a lot of popularity with the people. >> let's talk joe biden. his speech went over big. >> it did. i think he did an amazing job. his speech was very poignant, to the point, factual, and very inspiring. i think it really brought about more awareness abo thinks obama has done, and it wasn't anti-romney. he didn't talk about what romney is not going to bring to the table as much as he talked about what obama has done and accomplished his first term. >> i know two big issues for you, you and your husband, you're affluent, kids go to private schools because you're not so happy with public schools in georgia. >> right. >> you pay a lot for education. you're most worried about education for your kids, and of course job stability. >> absolutely. >> is either candidate really talking to those issues in a way that makes you say oh, yeah, i'm going to vote for you, because
you're going to solve those problems for me. >> right. i am not necessarily feeling that 100% from either of the candidates, although those are two very important things for me. there are other things that are coming along with having job stability, for example, health care. i think that's part of the reason why i'm really liking what obama has to say. as far as employment is concerned, i have seen unemployment rate rise and fall under obama's administration in that first term, and i just want to give him the opportunity i think to continue to do some of the things he promised to do for the american people. >> some say because mr. obama decided not to speak to the naacp convention that he is taking the african-american vote for granted. >> i did hear that. i don't necessarily think that's the case. joe biden is a partner of obama's, and he came and represented him, and i thought he did an excellent job doing so. i don't necessarily think obama had to be there in person for his message to be still heard.
i think it was heard loud and clear. >> and a final thought about mr. romney. do you think he won supporters by his speech at the naacp and what he said after the speech? >> not necessarily. i don't. i think he knew it was an unpopular thing to say, and he took a risk by doing it, but again, i give credit for the fact he came and presented to the group anyway. >> thank you so much. hope you come back. >> i would love to. >> yay. thank you. an overseas move for a u.s. company, but this time jobs are returning to america. what's behind the made in usa movement in georgia. a florida woman is safe after spending three days in her car without food or water. wait until you hear details of her ordeal and rescue. but one dark stormy evening... there were two things i could tell: she needed a good meal and a good family. so we gave her what our other cats love, purina cat chow complete. it's the best because it has something for all of our cats!
and after a couple of weeks she was healthy, happy, and definitely part of the family. we're so lucky that lucy picked us. [ female announcer ] purina cat chow complete. always there for you. i bought the car because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up. it's always a gratifying experience. it makes me feel good about my car. i absolutely love my chevy volt. ♪
frmgt we don't often hear about jobs moving to the united states from china, but this morning, that's the reality. starbucks and the mayor of augusta broke ground last hour for a factory in augusta. 140 american workers will manufacturer instant coffee and ingredients to make frappacino among other things. with us, peter gibbons, starbucks executive vice president and the augusta mayor. welcome to you both. >> good morning. >> thank you. >> good morning. glad you're here. peter, starbucks could build this factory overseas, hire cheaper workers in china. why augusta? >> well, you know, augusta and george is a great place to make things. american workers are among the most productive in the world, probably more in labor costs. for our business, end to end costs of running the supply
chain, it is a great place to do it. >> mayor, did you lobby hard for this factory? >> we did. and to have starbucks come into augusta, but more importantly to bemoving american jobs back from overseas, huge for the city and great for the country as well. >> how much competition did you have, mayor? >> i will tell you, we had a lot of competition. they could have gone any place in the united states, but they chose augusta. so we're happy to welcome them on as the newest community partner. >> peter, starbucks ceo howard schultz said today's increasing complex world requires companies to hold themselves to higher standards. so why aren't more profitable companies willing to pay more to hire workers in the united states and to build their factories here? >> well, you know, that's a great question. as you look at manufacturing
capabilities, a lot of companies focus too much on labor costs. we like to look at the end to end cost of our supply chain. i think we sometimes forget american workers are so productive, access to great technology, great infrastructure. you can get to market faster with more innovation doing it here in the united states. i think other companies can look at it, maybe look to do that here back home. >> many companies are considered about the bottom line and profit. bigger the profit, the better. again, why this thought process at starbucks? >> well, you know, we'll do very well with this plant. this is very end to end cost, total cost of getting product to market, not just about labor costs, it is how to you make sure you can access the market, get to customers, and work with great communities like augusta. here we can have a fantastic relationship with augusta population, be part of the
community, give something back. in the long run, we are convinced it is better for us and better for the community. >> mayor, final question for you, mr. mayor. are more u.s. factories considering building in georgia, building in other parts of the united states, or can you count the number of companies on one hand? >> no. we have another manufacturing facility that's being built here in augusta, rockwood, $100 million. we are fortunate to have a strong manufacturing basin augusta which helped bring in starbucks due to the quality of our labor force. i believe starbucks really sets the tone through this announcement. i look forward to working with them to bring more american jobs back from overseas. >> congratulations to you both, mayor cope enhafr, peter gibbons from starbucks, thanks for joining us. >> thank you. a north florida woman is safe today after spending three days in her car with no food or water.
70-year-old joyce gem becky was lost after leaving her retirement home in florida, wanted to do sight-seeing. her car ended up submerged in three and a half feet of water in a small creek in baker county. there she remained until found by a patrol from the florida forest service. officers that rescued her said she could have gotten out of the car, was afraid alligators could be in the swampy area. but again, she's safe and sound. the presidential campaigns accusing each other of lying. maybe there's nothing new about that. what's new, the topic. mitt romney's exit date from bain capital. we'll tell you why this could make a difference. ♪ [ male announcer ] ok, so you're no marathon man. but thanks to the htc one x from at&t, with its built in beats audio,
it is about 30 minutes past the hour. good morning, carol costello. checking our top stories. the bad jp morgan trades. $5.8 billion, nearly three times the original estimate. the company still managed to turn a profit last quarter. this morning, its stock is up sharply in morning trading. reports today of the deadliest fighting in syria since the anti-government uprising began 60 months ago. nearly 300 killed in one day. they are demanding cove ian on leave the country. today, there's new buzz it could be condoleezza rice.
unnamed sources say the former secretary of state is near the top of governor romney's list. stories all over the internet. rice has repeatedly said she is not interested and cnn has no information about rice being on romney's list. as a voter, you may wonder about the attacks surrounding mitt romney's exit date from bain capital. the romney campaign says he had nothing to do with the firm's operations after february, 1999. the obama campaign has seized on a report saying romney left the company in 2001. that two year dispute may not only be one for the election but for sec investigators. here is joe acosta. >> reporter: mitt romney said repeatedly he left his private investment firm, bain capital, in 1999. >> i left that business in 1999 to help with